5 Costs To Plan For When Buying Your First Home

For many first-time buyers, much of their financial focus is dedicated to saving for a deposit in order to secure a mortgage. This, of course, is of crucial importance – but the deposit is not the only financial outlay involved in buying your first ever home. If you’re hoping to get onto the property ladder in the near future, here are five other costs that you will need to budget for…

Stamp duty

Stamp duty can add a substantial amount to the overall cost of buying a property, but there is good news for first-time buyers: as detailed on gov.uk, you do not need to pay stamp duty on the first £300,000 of your property price – so it might be worth keeping this in mind when deciding your budget.

Fees charged by your lender

There are two specific fees that your mortgage provider will likely charge. The first is a valuation fee; before agreeing to provide financing, your provider will want to conduct a survey in order to ascertain the property provides suitable security for the loan. The cost of a mortgage valuation fee varies, so it’s something to keep in mind when deciding which provider you are going to choose.

Secondly, your lender will charge a “mortgage arrangement fee”; this is essentially a fee that covers their costs for arranging your mortgage. This fee can reach four figures in total, so always make sure you are happy with the required fee before deciding on your provider.

Survey

While your mortgage provider will conduct a survey on the property, this survey is relatively basic. To ensure that the property you are considering is a solid investment, it’s therefore advisable to hire a reputable property surveyor for a second, more in-depth look at the house itself. This second survey will help you ascertain if there are any major concerns with the property on a structural level and, if issues are detected, could help you to save money by altering your offer to reflect these issues – so it’s definitely worth doing, but is nevertheless an additional expense you will need to meet.

Legal fees

Buying a property is a legal transaction, and you will need to work with a reputable conveyancing firm such as those listed on conveyancingsupermarket.com to help ensure the transaction is smooth and straightforward. The exact amount you may pay for conveyancing tends to vary, depending on the value of the property you are purchasing.

Costs related to the move itself

Outside of the purchase itself, you’ll also need to find space in your budget to meet the costs of moving itself. We’ve previously provided tips that can help you to save money while moving here on modernmoneylife.com, so it’s well worth reading through and seeing how much you can save.

In conclusion

For first-time buyers, the added expenses of buying a property can feel a little disheartening, especially if you have dedicated years to carefully saving enough for your deposit. However, even with the extra costs, buying a home is still a worthwhile endeavour, and is sure to be a positive choice for your family’s future.

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